Hybrid Appraisals

[J Grant]

And now the AMC phone monkey is on your a** 90 minutes later asking where the report is.....and if you don't get it in soon, your tier rating is going to drop....

it's a sh**ty deal for the CDC collector, hounded for a deadline, having got pay for gas, meeting the expectation for the photos and floorplan for a relatively paltry fee and uncertain volume.

And i tis a sh*8ty deal for the appraiser, denied the inspection of their own subject, which makes them less well informed to a RE agent or owner or buyer, who typically have personally inspected teh subject - and the appraiser is stuck justifying a value on something they never saw ( and getting a lower fee for it in most cases )

The only ones it benefits via more proit and squeezing more volume from staff appeasers are the AMC'-

 

[George Hatch]

I, for one, know they are, or can be, USPAP compliant.

USPAP in format being compliant is not the issue; the content is , and we determine that. Still, we rely on third parties for a subject we could easily inspect ourselves, but now they erect a barrier to that. I hold that unless I see the property, I have no idea if my conclusions would be different vs relying on thrid party data - not about the thrid party making an error (though that is possible ), more that When I do not personally see the property, site and neigobhordd /comps, I can form a different set of concussions fs when I do go and observe in person ( plus can talk to owners/RE agents and builders on site ).

Is that copmcd ore ) or m are lf Taht is not the issue - hIpn

If they're allowed to ask for it and we're allowed to do it then everything else that follows is a function of supply/demand in the market. As is the case for every other type of assignment. As long as at least 10% of the appraisers are willing to do them it won't matter what the other 90% of appraisers do. If it would even be possible to sell a "just say no" to 90% of appraisers.

I keep wondering how C&R would even work for hybrids when only certain clients are engaging them.

 

[shrubberyvaluation]

I was under the impression the UAD was going to be applicable regardless of property type. Now I'm wondering if it will be applicable to the hybrid assignments, too.

Maybe, it will be 1 page and it will say, why put all the useless information in when you can use a PDC and do this in 30 minutes.

 

[J Grant]

1,000 sf 3/1 unfinished basement for $100+ PDC located in close proximity....
Is something I'd give heavy consideration....
Especially during Spring & Fall....

Wow a meager $100 random occasional assignment - what is that going to buy you now days, esp after you spent $ for gas and factor in wear and tear on car -it is side hustle money like UBER EATS delivery, not a professional income -

 

[Non Sequitur]

I was under the impression the UAD was going to be applicable regardless of property type. Now I'm wondering if it will be applicable to the hybrid assignments, too.

UAD 3.6 is dynamic, I'm sure there will be a drop down to choose hybrid that will take care of the details. Easy-peasy.

 

[Justinjla]

The empahiss on "efficiency" at the loss of so much else IMO is a bad bet when so much is at stake for each loan - yes of course they are on deadlines and appraisers are faster than ever with a promise 48 hour turn time from inpseicon typical now but the entities trying to produce them as a fast food widget - for what aim? It will not increase profit to lenders because their profit is in loan volume and the nature of RE is that there is a fixed and finite amount of loans given a year, even in a busy cycle,

It is not a consumer product like food or sneakers, where turning out faster or cheaper results in more sales .

That's the thing, we don't see "at the loss of so much else". We do not see increased risk with hybrid appraisals based on the 300k+ we have to analyze. And yes, we've compared them to traditional appraisals we have on the same properties. If we can create a more efficient process without increasing the risk of the loan, why would we not embrace that, especially during high volume markets?

We monitor all valuation types very closely many different ways. If we see increased risk, we adjust to mitigate it and that would include shutting a program down if it couldn’t be mitigated.

 

[shrubberyvaluation]

1,000 sf 3/1 unfinished basement for $100+ PDC located in close proximity....
Is something I'd give heavy consideration....
Especially during Spring & Fall....

Sure for the PDC side, just don't let them know you are an appraiser.

 

[J Grant]

If they're allowed to ask for it and we're allowed to do it then everything else that follows is a function of the market.

your usually bland answer - a funcin of WHAT market? The taxpayers and investors back stop these products and the only market that profits off faster cheaper and fast food cut up assignments are the AMC profiteers.

To all but the most venal or out to lunch there is more in play than just "market function "-

 

[shrubberyvaluation]

That's the thing, we don't see "at the loss of so much else". We do not see increased risk with hybrid appraisals based on the 300k+ we have to analyze. And yes, we've compared them to traditional appraisals we have on the same properties. If we can create a more efficient process without increasing the risk of the loan, why would we not embrace that, especially during high volume markets?

We monitor all valuation types very closely many different ways. If we see increased risk, we adjust to mitigate it and that would include shutting a program down if it couldn’t be mitigated.

As far as efficiency, if you don't see a risk difference, why require driving by the comps since there is no risk difference (comps not inspected in hybrids with no increase in risk). This would increase efficiency of the traditional product. Is this not something you would embrace during a high volume market?

It seems laser focused on this one program for reasons not related and then rationalizing why its not any riskier.

Also for efficiency why not make the scope less for the traditional product rather than more?

 

[ucbruin]

Wow a meager $100 random occasional assignment - what is that going to buy you now days, esp after you spent $ for gas and factor in wear and tear on car -it is side hustle money like UBER EATS delivery, not a professional income -

It'll get me out of the house....
I'll get a little bit of money to pay for my streaming services....
Side hustle money is all I want....
If I don't have to have a license or insurance then maybe I don't deserve or expect "professional" income....